CONSUMER PROTECTION ACT

In order to protect and save the consumers from exploitation, from adulterated, substandard goods and deficient services, Consumer Protection Act, 1986 was enacted which had come into force in May 1987. COPRA was enacted following adoption of the Guidelines for Consumer Protection in 1985 by the United Nations recognizing the rights of consumers, namely, safety, information, choice, representation, redressal, and consumer education.

India was one among the 185 odd countries who agreed to adopt the UN Guidelines for consumer protection.

The Consumer Protection Act, 1986 seeks to provide for the protection of consumers interests. It makes provisions for the establishment of consumer councils and other authorities to settle consumers disputes and connected matters. The Act has envisaged the setting up of Consumer Protection Councils at the central and state levels, namely, the Central Consumer Protection Councils (CCPC) and State Consumer Protection Councils. In the amendment in 2003, the Act also recommended setting up of District Consumer Protection councils.

Under the COPRA, 1986, an elaborate 3-tier redressal mechanism has been established. The apex body, the National Commission, is at New Delhi, while State Commissions are at State Capitals and District Forum is at the district level. The final appeal lies with the Supreme Court. The consumer Commissions have been entrusted with jurisdiction over cases of fixed monetary value. [The district level courts look into cases involving amount upto Rs.2 Million; State Commissions look into cases upto Rs.10 Million and National Commission look into cases involving amount more than Rs.10 Million]

A National Consumer Policy has also been adopted, the basic premise of which is to ensure that goods and services are available to consumers at reasonable prices and acceptable standards of quality.

The COPRA 1986 aims to

Protect consumers against marketing of goods and services hazardous to life and property Provide access to goods and services at competitive prices Award compensation to dissatisfied consumers. Better protection of interests of consumers Protection of rights of consumers Consumer protection councils Quasi-judicial machinery for speedy redressal of consumer disputes

Applies to whole of the state except the state of Jammu and Kashmir Applies to all type of goods and services, public utilities & public sector undertakings All types of complains relating to goods ,unfair trade practice

Remedies under this act is same as those in other laws.

A suit pending in civil court cannot be heard in consumer court

Consumer forums have the power to adjudicate disputes, but they do nt have trappings of a court
The consumer court powers are limited

 Price fixing or output restraint i.e delivery/flow of supplies to impose

unjustified costs/restrictions on consumers.

Collusive tendering; market fixing territorially among competing suppliers,

depriving consumers of free choice, fair competition.

Supplying only to particular distributors or on condition of sale only within a

territory.
Delaying in supplying goods/services leading to rise in price. Requiring a consumer to buy/hire any goods or services as a pre-condition

for buying/hiring other goods or services.

The consumer to whom the goods are sold or delivered, or agreed to be sold or delivered , or the service has been provided, or agreed to be provided Any recognized consumer association, regardless of whether the consumer is a member of such association or not. One or more consumer , where there are numerous consumer having the same interest with permission of the district forum on behalf of or for the benefit of all consumer so interested. The state or central govt. either its individual capacity or as a representative of the interest of the consumer in general.

COMPLAINTS & WHO CAN FILE A COMPLAINT ???

A complaint is any allegation in writing made by a complainant that, an unfair trade practice or a restrictive trade practice has been adopted by any trader.
Under sec2(1)c of consumer protection act, A complaint must be made with a view to obtaining any relief provided.

A consumer can file a complaint under the Act ,

Who is a Consumer? A Consumer under the Act is:" One who buys any goods, hires and service/services for a consideration which has been paid or promised or partly paid and partly paid and partly promised under any system of deferred payment."

i) one who hires or avails of any service or services for a consideration, which has been paid or promised or partly paid and partly promised, or under any system of deferred payment.
ii) Any voluntary consumer association registered under the Companies Act or any other law for the time being in force. iii) Class action complaints - one or more consumers, where there are numerous consumers having the same interest. iv) The Central Government v) The State Government or Union Territory Administrations.

Section 24A of the Act provides that a consumer dispute can be filed within two years from the date on which the cause of action arises. The point of time when cause of action arises is an important factor in determining the time period available to file a complaint. There are no set rules to decide such time. It depends on the facts and circumstances of each case.

The complaint should be filed within 2 years from the date of cause of action.

Appeals are require to be filed within 30 days from the date of receipt of the court's order. It may be noted that these time frames are not absolute limitations. If the Consumer Forum is satisfied that there was sufficient cause for not filing the complaint within the prescribed period, it can entertain a complaint beyond limitation time. However the Forum must record the reasons for condensation of delay.

Monopolies and Restrictive Trade Practices Act, 1969 was the first anticompetitive legislation enacted in India. The broad objectives sought to be achieved through MRTP Act were prevention of concentration of economic power, control of monopolies, prohibition of monopolistic, restrictive and unfair trade practices. Keeping pace with the changes in economic policies ushered in 1991; a forward looking Competition Act, 2002 was enacted in January 2003. It was later on amended by the Competition (Amendment) Act, 2007. Although the Indian Competition Act had come into existence in the year 2002, because of cases filed in the Court challenging the enactment of new Act, the Competition Commission of India (CCI) could only be duly constituted in March 2009. It now consists of one Chairperson and Six members.

In order to hear and dispose of appeals against any direction or order of the Commission, Competition Appellate Tribunal (CAT) has been established. It consists of one Chairperson who is retired Judge of the Apex Court of India and two other members who are experts in competition matters.

The Competition Act, 2002 has two broad elements; one, enforcement of competition laws and second, competition advocacy.
The enforcement provisions of the Competition Act, 2002 relating to anticompetitive agreements and abuse of dominance (Section 3 and Section 4) were notified and brought into force in May 2009.

Competition Act, 2002 and Consumer Protection Act, 1986 are two different sets of acts in India; the Consumer Protection Act looking primarily at the instances of unfair trade practices, while the Competition Act has wider mandate investigating all actions that may lessen competition and reduce consumer welfare at the market place.

However, it is not that the objective of Competition Act, 2002 is to promote only competition leaving the interest of consumers to be looked after by the Consumer Protection Act, 1986. As per preamble and duties of the Commission prescribed in the Competition Act, 2002, it is the duty of the Competition Commission of India is not only to eliminate practices having adverse effect on competition, promote and sustain competition, ensure freedom of trade carried on by other participants in markets in India, but also to protect the interest of consumers.

The scope of definition of term Consumer under the Competition Act, 2002 is wider one. It covers not only the end consumers who purchases goods for personal purpose, but also the intermediate consumers who purchase goods for resale or for any commercial purpose. This is a major difference as far interpretation of the term consumer is concerned.

CCI aims to provide effective deterrence against all sorts of anti-competitive practices A sort of visible hand for corrections at the market place.

Consumers need protection and are looking at the CCI with great expectations.
CCI aware of these expectations is committed to take actions against all practices which lessen competition and reduce consumer welfare. Recent order of the Court upholding the decisions of CCI to conduct inquiries against anti-competitive practices of some corporate bodies harming the interests of consumers is quite encouraging.

Govt. of India has appointed a number of regulatory authorities to safeguard the interest of consumers, fix prices and other measures to protect consumers . Some of them are : Telephone Regulatory Authority of India ( TRAI ) Securities Exchange Board of India ( SEBI ) Insurance Regulatory and Development Authority ( IRDA ) Electricity Regulatory Authority in various states Drug Price Regulatory Authority

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